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North American Gem Inc (C:NAG)
Shares Issued 193,787,162
Last Close 7/26/2012
.005
Friday July 27 2012 - News Release
Mr. Charles Desjardins reports
NORTH AMERICAN GEM INC. UPDATE
North American Gem Inc. has executed an asset purchase agreement with Keener Ridge Coals Inc. of West Virginia. Under the Agreement, the Company will transfer to KRC its interests in certain coal leases and mining permits located in Kentucky. KRC will assume the immediate obligations and liabilities associated with the permits and leases. For all coal sold under Permit 861-0519 (Swan Pond), the Company will receive an override royalty of $1.50 per ton, but only after KRC has recouped the amount of funds it had to spend to address the immediate obligations and liabilities associated with the permits and leases being transferred.
Under the Agreement, KRC is also obligated to satisfy any claims made by Kentucky Mining Partners LLC against North American Gem. The Company had reported in previous disclosure documents that KMP had filed a lawsuit on March 17th 2011 in the Eastern District of Kentucky, United States District Court (Federal Court). As a result of this Agreement, the Company no longer has any direct mining operations in Kentucky.
The Company further reports that it has executed a Mutual Release and Termination Agreement with certain landholders regarding various coal leases within West Virginia. Under the Agreement, the Company will no longer have any obligations or hold any interests in coal leases located within West Virginia.
The Company also reports that Hunter Dickinson Group has elected not to proceed with earning its initial ownership interest of 50% in the Joint Venture Agreement on the Louise Lake property previously executed between HDG and NAG. The Company believes the Louise Lake project still maintains inherent value especially in more robust commodity markets.